Oil Falls on Rising US Gasoline Supplies


That would be the largest increase since January 2016 if federal government data confirm it on Wednesday.

Crude oil prices held mostly steady in early Asia on Wednesday as the market mulled the latest U.S. industry weekly inventory estimates and monitored geopolitical risks. Still, "I don't think gasoline demand is going to fall apart all of a sudden".

Outside the United States, analysts said that a supply cut led by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation, which is expected to last throughout 2018, has helped Brent prices rise by over 40 percent since June, and by more than 130 percent since January 2016, when they hit their lowest level since 2003.

OPEC oil output fell in November by 300,000 barrels per day (bpd) to its lowest since May, a Reuters survey found on Monday, as the oil cartel maintained strong compliance with the deal to curb output.

US West Texas Intermediate crude futures settled down US$1.66, or 2.9 per cent, to US$55.96 a barrel.

On Thursday, OPEC and 10 countries outside the cartel including Russian Federation agreed to extend production cuts through the end of 2018, largely meeting analyst expectations.

Goldman Sachs Group predicted earlier this week that oil prices will retain their strength, at least through 2018. That price is near unchanged levels on the trading day.

London Intercontinental Exchange (ICE) is a London-based options exchange and a leading operator of global exchanges founded in 1982.

The Energy Information Administration reported that US crude oil refinery inputs averaged 17.2 million barrels per day during the week ending December 1, 2017, 192,000 barrels per day more than the previous week's average. WTI Oil slipped under $57 per barrel and took a hefty tumble as equities plunged around Asia and Europe. Gasoline stockpiles rose to 220.9 million barrels, with supplies in the Central Atlantic region increasing by the most since February.

Brent crude futures were down $1.28 at $61.55 USA a barrel approaching noon ET Wednesday, after reaching a session high of $62.93 US, while U.S. crude futures dropped $1.33, or 2.2%, to $56.33 U.S. Inventories at Cushing probably slid by 2.4 million barrels, a separate forecast compiled by Bloomberg showed.